While the South Dakota state legislature has not yet approved any laws specifically addressing smart grid, as early as 1996 it has looked into some distributed generation technologies and created contractual methods for entering into wind easements for wind energy systems. (H.B. 1263) 
The South Dakota Public Utilities Commission had approved distributed generation prior to 1995. By 2002 the Commission had approved demand side management for business customers and 2008 for residential customers. The Commission reviewed Time-of-Day rates for all customers by 1992, and had established Real Time pricing for business customers by 2008. [3, 4, 5, 6]
“In July 2007, the South Dakota Public Utilities Commission decided not to adopt PURPA Standard 14 (“Time-Based Metering and Communications”) as enacted in EPACT 2005. The Commission’s decision is summarized in two passages from its July 2007 Decision:
- “The Commission finds that little evidence was presented that demonstrated that the adoption of this standard at this time would meet the PURPA goals of energy conservation, efficiency of facilities and resources and equitable consumer rates. The Commission finds that adoption of the standard could result in the utilities being required to offer uneconomic programs that result in higher rates.”
- “At this time, the Commission is not convinced that the benefits of mandatory time-based metering for all customer classes will outweigh the costs.”” 
Distributed generators include small qualifying power production facilities where prices are negotiated with the company.
Demand-side management includes interruptible service, energy storage service, controllable demand, and deferred loads. Interruptible service that charges a reduced rate to the customer for the company has the ability to de-energize specific equipment at a negotiated rate. Energy storage service and controllable demand charges a significantly reduced rate for the customer to shift energy use to off-peak times. Deferred loads include any load that the company can control to de-energize and or cycle off for up to 14 hours out of any 24-hour period.
Time-of-Day or Time of Use rates break the cost for electricity into periods on a seasonal basis for energy and demand pricing with either on-peak or off-peak pricing.
The Real Time pricing is based on the company’s marginal cost-based prices and provided to the customer eight hours in advance of the day the power flows.
Utilities and Rate Schedules
Black Hills Power
- Black Hills Power Rates
- MidAmerican Energy Rates
Montana-Dakota Utilities Co.
- Montana-Dakota Utilities Co. Rates
- NorthWestern Energy Rates
Otter Tail Power Co.
- Otter Tail Power Co. Rates
- Xcel Energy Rates
See the National Rural Electric Cooperative Association (NRECA) for information on consumer-owned Cooperatives: http://www.nreca.org/members/MemberDirectory/Pages/default.aspx
South Dakota offers property tax exemptions for wind and solar, and sales tax refunds for wind.
More information can be found in the Database of State Incentives for Renewables & Efficiency (DSIRE): http://www.dsireusa.org/incentives/index.cfm?re=1&ee=1&spv=0&st=0&srp=1&state=SD
State Energy Office:
- Statewide Energy Management
State Authority Dealing with Energy Regulation:
- South Dakota Public Utilities Commission
- Docket Search: http://puc.sd.gov/Dockets/Electric/default.aspx
South Dakota Codified Laws
Database of State Incentives for Renewables & Efficiency (DSIRE): http://www.dsireusa.org/incentives/index.cfm?re=1&ee=1&spv=0&st=0&srp=1&state=SD
 Demand Response and Smart Metering Policy Actions Since the Energy Policy Act of 2005: A Summary for State Officials, Prepared by the U.S. Demand Response Coordinating Committee for The National Council on Electricity Policy, Fall 2008. URL: http://www.oe.energy.gov/DocumentsandMedia/NCEP_Demand_Response_1208.pdf
 Database of State Incentives for Renewables & Efficiency, South Dakota Wind Easements, 03/26/2010. URL: http://www.dsireusa.org/incentives/incentive.cfm?Incentive_Code=SD06R&re=1&ee=1
Black Hills Power, Public Utilities Commission of South Dakota South Dakota Electric Rate Book, 3/17/2010. URL: http://www.blackhillspower.com/pdf/South_Dakota_Tariff_Interim_Rates.pdf
MidAmerican Energy, South Dakota Electric Tariffs, 2/19/2010. URL: http://www.midamericanenergy.com/include/pdf/rates/elecrates/sdelectric/sd-elec.pdf
Xcel Energy, Electric Rate Increase, 1/7/2010. URL: http://www.xcelenergy.com/Save_Money_&_Energy/For_Your_Home/Rate_Options
OtterTail Power Company, Rates, rules and regulations, Electric service – South Dakota. URL: http://www.otpco.com/ElectricRates/RatesReferenceTable.asp#SD